Taking out a bank loan can be a great solution. Whether it is to pay off a previous debt or to fulfill a wish, the “extra” money makes it easier to pay in cash and guarantees discounts. Even for other obligations: just trade directly with the company you owe, and conditions usually improve.
Obtaining values, however, deserves consideration. After all, the consumer is acquiring new debts and must pay them on time. Choosing the best bank is therefore an important step. In today’s article, we’ll show you the best online banks to lend money to.
1. App Cash
Cash App is financial transaction software developed by Square Corporation. This payment tool allows you to receive and send money instantly, as well as invest in BTC or stocks. It is distinguished from other services by its Visa debit card, which can be used in stores and ATMs.
- It’s free to send, receive and transfer money with just the debit portion of the account. If you need to make bank transfers, this is also possible, and there is a 3% fee.
- Transfers are made immediately as soon as you send them; you can access it the same day or, in some cases, within three working days.
- You can send up to $ 250 in seven days and receive up to $ 1,000 in 30 days. These limits increase as you use the app.
- The Cash application is available for iPhone and Android.
Cash App is currently testing the loan function. As a relatively new banking tool, which has already worked very well, users felt confident when trying to borrow through the app. The loan service has been in operation since December 2020; if you want to understand step by step how to borrow money via Cash App, check out the article by Almvest.
Go2bank is an online bank with low fees and is ideal for mobile devices. Banking has become popular due to the lack of monthly payments and good income with savings. The bank has certain tools, such as an electronic gift card, which generate up to a 7% refund in the app. And other types of bonuses such as purchases through the Amazon eGift Card app generate a 3% refund.
- The bank has a deposit account. There is no minimum opening deposit or balance requirement, and you can avoid the $ 5 monthly fee with a qualifying direct deposit. It is also possible to deposit money at partner retail stores of the bank.
- Savings. It is possible to earn 1% APY paid quarterly in savings of up to $ 5,000 – more than ten times the national average savings rate.
- Loans from this bank are also relatively new, but they are already working across the market.
3. Bank Varo
The Varo bank account is a real online banking success. It doesn’t charge a monthly maintenance fee and you don’t need to maintain a minimum balance on your account. Government-issued ID and Social Security number are required for registration, but no minimum deposit is required to open your account. All you need is 18 years old and a smartphone to use Varo Bank. The company offers different loan options depending on your limit and how often you use the card.
- At Varo, you can quickly access direct deposit payments. Deposits are generally made the same day they are received.
- Varo offers a no-charge overdraft, which allows you to withdraw your checking account up to $ 50 when making a debit card purchase. There are no fees or interest charges, but you must meet two conditions to be eligible.
- You must make five debit purchases per month and receive payroll payments or direct government deposits of at least $ 1,000 per month.
What is the best bank for a loan?
The definition of the best bank varies depending on the type of loan to be obtained. If the values are obtained by payroll, for example, the employee of a private company does not have many options: he will only obtain agreements with the institution with an agreement with his company.
When taking a loan from the bank, it is necessary to assess several requirements in addition to the interest. What is your relationship with the company? Do you trust your manager? When is the deadline for debt settlement? What are the penalties and fines for late payment?
What do other consumers say about the bank’s service? So, before joining a service that has lower interest rates, evaluate all of these aspects. A good alternative is to visit the complaints websites in your country. There it is possible to check the opinions of the customers on the services of the bank and whether the financial institution is seeking to solve the problems of the consumers.
How to evaluate the different loan options?
To come to a common denominator when defining the best bank for a loan, it is essential to consider several aspects. Just as institutions have different practices, so does the credit model. Among the main factors to consider when choosing a specific loan are the interest rates, the amount to be released, the terms of payment. The definition will therefore depend on the search for information and the adaptation to the candidate’s profile.
How to use online simulations in finding the best loan?
Now that you know what the best bank to borrow is, it’s time to make the right choice. For this, one of the resources most used by Brazilians is online simulation. With these tools, it is possible to evaluate options conveniently and without leaving home.
A search by browser leads to different modalities of online simulations, which can be done via a simplified registration and some additional information. From there, the resource pulls together proposals from other institutions, and you can think of which one best suits your intention.
Thus, it is possible to anticipate different scenarios, such as financing, debt restructuring, income commitment or even credit portability. You research quickly and feel more confident in your decisions.
Besides the simulations available online, another determining factor in choosing the right loan is the economic scenario of the country. Indeed, different factors influence the calculation of interest rates: health, government or price crises can affect interest rates in the country.